South Korea’s Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol reaffirmed plans to restructure the Long-Term Holding Special Deduction for single-home owners per household, shifting its emphasis from ownership duration to actual residence. Speaking during a National Assembly economic policy interpellation session on the 11th, Koo said the reform would change housing incentives rather than punish homeowners, with reasonable exceptions for employment, education, overseas residence and other circumstances. The government plans to reduce the holding-period component gradually, increase the residence-period component and apply residence-only deductions from 2029 at 8% per year, capped at 80%; it also plans a 1 billion-won cap on the deduction for high-end homes. Koo said residents of homes valued at 3 billion won or less, representing 99% of the total, would generally receive tax reductions or be little affected. The session also covered housing affordability and policy credibility: Prime Minister Han Sung-sook apologized for an 11% rise in apartment prices since the Lee Jae-myung administration took office, citing the time required for supply projects to progress from planning through groundbreaking to occupancy. Lawmakers challenged the government’s lending controls after its household-loan growth management target rose from 1.5% to 3% within four months, while Seoul faced scarce jeonse listings and rising monthly rentals.